Information for ex-employees

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We have set out below a step by step guide to the insolvency process;

If you have been made redundant and steps are being taken to place your employer into an insolvency process, then you will be unable to submit a claim to the Redundancy Payments Service (“RPS”) until your employer has formally entered into an insolvency process.


If your employer is entering into creditors’ voluntary liquidation;

The insolvency practitioner will request information from your employer in order to prepare a document called the Statement of affairs (“SofA”). There is no time scale as to how long this will take. The insolvency practitioner will only be able to complete the SofA when they have received all the information from your employer.

Once the SofA has been approved by the directors, the insolvency practitioner will write to all creditors and employees letting them know that the company will be placed into a formal insolvency process on a certain date (you do not need to do anything with this document).

Once your employer has entered into administration / liquidation;

After the company has been placed into the administration / liquidation, the duly appointed office holder will write to you and provide you with a CN reference number. Once you receive the CN reference number, you will be able to submit your claim to the RPS.

You claim by logging on to the RPS website and completing a claim form online using the CN reference number.

The appointed office holder will also provide documents to the RPS to confirm that the company has entered into the formal insolvency process. Once the RPS has received these documents and your claim, they will process your claim.

Please note that the RPS will not issue a CN number or deal with these claims until your employer has entered into a formal insolvency process such as liquidation or administration.



 When will I get paid?

Payments will be made by the Redundancy Payments Service (“RPS”) within 6 to 8 weeks from date of appointment i.e. the date of the company has been placed into formal liquidation / administration.

Who do I contact regarding my claim?

If you have a query regarding the amount of money you have received or how the amount has been calculated, you will need to contact the RPS. The RPS calculate your claims and make the payments.

My claim is wrong, what do I do?

If you believe that your payment was incorrect, your claim can be reviewed.

Claims can only be reviewed if evidence is provided. The evidence can be a copy of your employment contact.

If your query relates to the rate of pay – please supply your last three payslips if paid monthly or your last 12 payslips if you are paid weekly.

This information should be sent to If there has been an error with the information provided by your employer then the insolvency practitioner will review and resubmit the correct information to the RPS.

How is my claim worked out?

The RPS calculate your claim from a document called an RP14a which is completed and submitted by the insolvency practitioner. The information submitted on the RP14a is obtained from information provided by your employer and from your employer’s accounting records.

What am I entitled to be paid?

You are entitled to claim the following depending on your circumstances:

Redundancy Pay – if you have worked for the company for two continues years (you have six months from the day you are dismissed to apply for statutory redundancy pay)

Holiday Pay – any unused leave you were entitled to take between the start of your holiday year and the date of your redundancy. Please note that if you were made redundant part way through the holiday year, your holiday entitlement is pro-rata.

Statutory Notice Pay – if you worked for your employer for at least one month

Arrears of wages – money you are owed by your employer i.e. unpaid wages, overtime and commission.

There are limits on what the RPS can pay you for each type of claim. The weekly payment from the RPS is capped at £643. If your salary exceeded the £643 limit, you will have a claim against the company in the insolvency process.

The RPS will deduct National Insurance (NI) and PAYE from any arrears of wages, holiday pay, and notice pay claim paid to you.

For further information about the different types of payments and deductions please visit

How will the payment be made?

You will be asked to provide your bank details when completing your redundancy form.

What about my pension?

If your employer is insolvent and did not pay all the pension contributions that were due in the year prior to the insolvency, your pension scheme may be able to claim some or all of the shortfall against the RPS.

The claim for a pension shortfall can only be made by the pension scheme trustees. The RPS cannot make pension payments directly to individuals.

Will getting a new job affect my redundancy pay?


Getting a new job will not affect your redundancy claim. It will affect your claim for notice pay.

However, if your new job pays less than your previous job then the RPS will pay the difference.

Will I get a P45?

If you have not received one on the day you were made redundant you will not receive one. The insolvency practitioner is unable to provide you with a P45. You will be able to use your last payslip for this purpose as this will contain all the information on your P45.

How long does it take to place a company into liquidation?

It can take several months to place a company into liquidation and you should consider taking your own independent advice to preserve your claim against your employer.

Further information

There are a number of organisations which can provide advice and help to employees who have been made redundant due to their employer entering into an insolvency process.

The ACAS and websites provide an informative overview.